Shell Passes Chevron To Become No. 2 Oil Giant

London-listed Royal Dutch Shell has overtarken California-based Chevron to become the world’s second biggest non-state owned oil company.

The move comes after Shell completed the acquisition of BG Group which nudges its value to £133bn – now in excess of Chevron £112bn market capitalisation.

The £36bn acquisition of BG group by the Anglo dutch company was completed on February 15 having first been mooted in April 2015.

The deal – the industry’s biggest this decade – comes against a backdrop of falling oil prices.

Since Shell first tabled its bid in April last year the price of brent crude oil has fallen 42%, however the fact that the deal gives Shell access to BG’s liquid natural gas reserves was seen by many as more of reason for the deal to go ahead in the current environment.

BG’s shares were made came to the fore in the 1980s with the ‘Tell Sid’ ads rise yesterday’s sale means that hundreds of thousands of people who purchased British Gas shares in the 1986 are in line for a signifcant windfall.

The deal also means that Shell has overtaken HSBC to become the biggest FTSE 100 listed company

Texas-based Exxon Mobil remains the world’s most valuable oil company with a market value of £234bn – nearly twice the size of Shell.

The fortunes of Shell are closely watched by many UK investors since its dividends comprise around £1 in every £7 paid out to UK pension funds.